Discounts may boost volume, but at a high cost to profit margins.
Marginal cost begins to exceed average cost, creating a profit margin despite competitive pressure to price to marginal cost.
Others, such as James Tooley, a British academic who advises a chain of low-cost for-profit schools in India, say private-sector education in poor countries routinely outperforms the free, taxpayer-subsidised version.
Energy Network allows organizations to manage the full spectrum of distributed generation assets as a fleet, which enhances business continuity, reduces enterprise risk and transforms cost centers into profit centers.
Cost cutting, shrinking profit margins and a slow economy have influenced a lot of bad decision making.
Whether inside a company or outside, how can you turn a cost center into a profit-producing strategic asset?
Using energy in a way that saves money protects the climate too, not at a cost but at a profit.
As a result, IT has moved from a low-priority to high-priority, a cost center to a profit center, non-strategic to strategic.
Costco Wholesale (COST) reported that profit increased by 27 percent during the fourth quarter due to increasing sales and higher membership fees.
Additionally, the company can utilize its substantial bargaining power with its suppliers, reducing the impact of industry-wide input cost increases and sustaining profit margins.
Carl Icahn has been one of the loudest proponents of activist investing, taking big stakes in companies, proposing aggressive cost-cutting and profit-enhancing measures, and then closing their positions to take a hefty profit.
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"They are guaranteed to make a profit on the cost overruns, " Dooley said.
Overwhelmingly, agencies are compensated by charging their clients a fee, estimating labor cost and including an agreed profit margin.
My thoughts turn to all who are unemployed, often as a result of a self-centred mindset bent on profit at any cost.
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In corporate news, Costco (COST) announced that quarterly profit was higher by 39 percent due to increased sales as well as membership fees.
If students can get college credit for completing MOOCs, that changes the equation dramatically and poses new cost competition to for-profit online schools.
Also, as viewership increases, a broadcaster can secure higher advertising rates for its fixed-cost content, leading to fatter profit margins.
The fear is that a jump in prices will squeeze profit margins as the cost of commodities, goods, and transportation spikes up.
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Day is known for cost-cutting his way to profit at failing companies, and investors will be listening very closely to what he has to say when he finally speaks.
Taken together, these five segmentation approaches get the right employees to join and stay, without breaking the bank, turning employer branding from a recruitment cost to a strategic driver of profit.
Thomas Cook said plans to stabilise the business in the UK were now complete, with the closure of 149 shops contributing to significant cost savings and an improvement in profit margins.
Panasonic (PC) announced that it was expecting a rebound during the current financial year and that it should turn an operating profit, due to cost cutting bolstering profitability and its television unit.
The contribution margins are profit margins calculated after subtracting cost of revenues and marketing expenses from revenues.
You heard right: not a cost to the taxpayers, but a profit.
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In an interview with the BBC on Wednesday, Jeff Bezos admitted that Amazon sells the Kindle Paperwhite and Kindle Fire HD at cost, making the company literally no profit on the devices.
Much of the development cost of a new drug is paid by the US market (yes, this is why you pay higher prices than most Europeans do) meaning that as long as drugs in, say, Greece are sold at above the marginal cost of production they still make a profit.
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Certainly for-profit plans have a reputation for cost-cutting, whereas not-for-profits, such as Kaiser Permanente, are known for innovative health-care delivery.
The bank buys the house, then sells it to the buyer at cost plus a pre-agreed-upon profit, paid in installments.
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